Description
The late Simon Benninga was Professor of Finance and Director of the Sofaer International MBA program at the Faculty of Management at Tel-Aviv University. For many years he was a Visiting Professor at the Wharton School of the University of Pennsylvania. Tal Mofkadi is an Assistant Professor in the School of Finance in the Faculty of Management at Tel Aviv University, University of Amsterdam, and Nagoya University of Business and Commerce, and the managing partner of Numerics, an economic and financial consultancy firm. Preface and Acknowledgments xix Before All Else 1 I Corporate Finance 13 1 Basic Financial Analysis 15 2 Corporate Valuation Overview 53 3 Calculating the Weighted Average Cost of Capital (WACC) 73 4 Pro Forma Analysis and Valuation Based on the Discounted Cash Flow Approach 111 5 Building a Pro Forma Model: The Case of Merck 145 6 Financial Analysis of Leasing 161 II Bonds 177 7 Bond’s Duration 179 8 Modeling the Term Structure 207 9 Calculating Default-Adjusted Expected Bond Returns 231 III Portfolio Theory 253 10 Portfolio Models–Introduction 255 11 Efficient Portfolios and the Efficient Frontier 287 12 Calculating the Variance-Covariance Matrix 337 13 Estimating Betas and the Security Market Line 357 14 Event Studies 377 15 The Black-Litterman Approach to Portfolio Optimization 405 IV Options 435 16 Introduction to Options 437 17 The Binomial Option Pricing Model 459 18 The Black-Scholes Model 499 19 Option Greeks 537 20 Real Options 569 V Monte Carlo Methods 591 21 Generating and Using Random Numbers 593 22 An Introduction to Monte Carlo Methods 639 23 Simulating Stock Prices 661 24 Monte Carlo Simulations for Investments 689 25 Value at Risk (VaR) 715 26 Replicating Options and Option Strategies 733 27 Using Monte Carlo Methods for Option Pricing 765 VI Technical 829 28 Data Tables 831 29 Matrices 849 30 Excel Functions 859 31 Array Functions 905 32 Some Excel Hints 919 33 Essentials of R Programming 951 Selected References 963 Index 975
